Police boss Vera Baird said she will not be investigated after giving taxpayers’ cash to her own charity.

Northumbria’s Police and Crime Commissioner (PCC) awarded her new Victims First Northumbria, of which she is a director, a Government grant of more than half a million pounds.

The former Labour MP and solicitor general was able to do so after the government changed the rules to allow PCCs to commission services for victims of crime.

A Ministry of Justice (MoJ) source said yesterday that officials would be making inquiries to ascertain whether any conflict of interest rules have been broken.

But the MoJ has confirmed it has no intention to investigate Mrs Baird, the PCC today said.

Mrs Baird set-up Victim’s First Northumbria last month to provide services to victims of crime.

The national specialist charity Victim Support had previously provided the service, but decisions on funding for victim care were recently devolved to a local level following the introduction of elected PCCs.

And Mrs Baird chose to open her own charity instead of giving cash to Victim Support.

Companies House records filed last month show a Victims’ First co-director is Northumbria’s Chief Constable Sue Sim, who has been at the centre of misconduct allegations.

Vera Baird

But a force spokesman said she would be standing down from the organisation when she retires in June.

Mrs Baird today said she is confident she has not done anything wrong and that all decisions were made in the interests of victims.

“My decision to establish a charity in order to deliver the highest quality of victims’ services to the public of Northumbria is the right model for our region,” she said. “Victims First Northumbria is unique in that it will give victims one point of contact for all their needs and support.

“All Ministry of Justice procedures and protocols have been adhered to throughout.

“Victims First Northumbria has got off to a great start helping over 550 people in just over two weeks. I am confident that our excellent team of Victim Care coordinators will go from strength to strength with my strong support.”

But Keith Vaz, chairman of the Home Affairs committee, said her actions were ‘inappropriate’

He said: “It is totally inappropriate for a PCC to set up any organisation in which they have an interest of whatever kind using public money.

“The fact that the co-director is also the Chief Constable of Northumbria is wrong and they should cease these activities immediately.

“The Home Secretary should never have given these powers. The Labour Party is committed to abolishing PCCs.”